Brainwired - WeStock
Initial Ask – Rs.50 lacs for 5% equity at a valuation of Rs.10 Cr.
About the Company
The company, Brainwired has come up with a new range of products under the brand: WeStock. This caters to the problem of livestock health monitoring, which uses IoT, ML and AI in order to monitor the health and reproductive cycle of the livestock and make the relevant information available with the farmers at their fingertips. With an eartag, applicator, a reader and cloud infrastructure, farmers get all the required information in their apps. They don’t only aim to monitor the health conditions of the cattle, they cater to increase the productivity of the farmers.
Government of Maharashtra was their first customer, where they served around 400 cattle. Along with that, they’ve collaborated with Tech Mahindra and Godrej Maxximilk. Additionally, small farmers from Tamil Nadu, Karnataka and Kerala have placed orders for their cattle feed. This is how this company has come up with world’s most affordable livestock monitoring system.
Past performance of the Company
The average price of this system is $150-300 globally, which is sold at a mere price of $20 by this company. This is the way this company aims to capture the said market.
Last month being their first month of sales, they made around Rs. 15 lacs from Government of Maharashtra. Apart from that, they’ve got an additional of 2 lacs from small farmers of above spoken states.
Their current pipeline can generate an upfront revenue of Rs. 54 lacs, a monthly of Rs. 6.7 lacs.
Industry Overview
The overall livestock monitoring market is expected to grow from USD 1.4 billion to USD 2.3 billion market by 2026, growing at a CAGR of 10.4%. Key factors feuling this market’s growth include livestock monitoring and disease detection and increasing adoption of IoT and AI by dairy farmers. There has been a strong demand of the products in this market, especially in the midst of Covid.
The pricing strategy that this company talks about is the one through which they can capture the global markets wholly. Plus, the efficiency of utilisation of these products in the global farms is more than that in India, because of the presence of big stretch farms there. Thus, India has a great potential to make a global presence and capture a major share in this segment.
Previous Equity Split/Investments
They’ve raised Rs. 27 lacs previously at a valuation of Rs. 2.5 Cr. in 2020. 4 months back in 2021, they raised another Rs. 50 lacs at a valuation of Rs. 5.5 Cr. They also got a grant of Rs. 25 lacs from the Government of India.
Offers made, and the one accepted:
1. Ashneer Grover, Peyush Bansal, Namita Thapar and Aman Gupta came together to offer Rs. 50 lacs for 9% of the equity of the company.
This was countered by asking for Rs. 75 lacs for 10% of the equity.
2. To this, the 4 sharks offered Rs. 60 lacs for an equity of 10%. The deal was closed at this offer.